08
SB531/AP
Senate
Bill 531
By:
Senators Hamrick of the 30th, Orrock of the 36th, Brown of the 26th, Chance of
the 16th, Thompson of the 5th and others
AS
PASSED
AN
ACT
To
amend Article 7 of Chapter 14 of Title 44 of the Official Code of Georgia
Annotated, relating to foreclosure on mortgages, conveyances to secure debt, and
liens, so as to require a foreclosure to be conducted by the current owner or
holder of the mortgage, as reflected by public records; to provide for the
identity of the secured creditor to be included in the advertisement and in
court records; to change the requirement for mailing or delivery of notice to
debtor for sales made under the power of sale in a mortgage, security deed, or
other lien contract; to provide for the content of such notice; to provide for
related matters; to provide an effective date; to repeal conflicting laws; and
for other purposes.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION
1.
Article
7 of Chapter 14 of Title 44 of the Official Code of Georgia Annotated, relating
to foreclosure on mortgages, conveyances to secure debt, and liens, is amended
by revising Code Section 44-14-162, relating to manner of advertisement and
conduct necessary for validity for sales made on foreclosures under power of
sale, as follows:
"44-14-162.
(a)
No sale of real estate under powers contained in mortgages, deeds, or other lien
contracts shall be valid unless the sale shall be advertised and conducted at
the time and place and in the usual manner of the sheriff´s sales in the
county in which such real estate or a part thereof is located and unless notice
of the sale shall have been given as required by Code Section 44-14-162.2. If
the advertisement contains the street address, city, and ZIP Code of the
property, such information shall be clearly set out in bold type. In addition
to any other matter required to be included in the advertisement of the sale, if
the property encumbered by the mortgage, security deed, or lien contract has
been transferred or conveyed by the original debtor to a new owner and an
assumption by the new owner of the debt secured by said mortgage, security deed,
or lien contract has been approved in writing by the secured creditor, then the
advertisement should also include a recital of the fact of such transfer or
conveyance and the name of the new owner, as long as information regarding any
such assumption is readily discernable by the foreclosing creditor. Failure to
include such a recital in the advertisement, however, shall not invalidate an
otherwise valid foreclosure sale.
(b)
The security instrument or assignment thereof vesting the secured creditor with
title to the security instrument shall be filed prior to the time of sale in the
office of the clerk of the superior court of the county in which the real
property is located."
SECTION
2.
Said
article is further amended by revising Code Section 44-14-162.2, relating to
sales made under the power of sale, mailing or delivery of notice to debtor, and
procedure, as follows:
"44-14-162.2.
(a)
Notice of the initiation of proceedings to exercise a power of sale in a
mortgage, security deed, or other lien contract shall be given to the debtor by
the secured creditor no later than 30 days before the date of the proposed
foreclosure. Such notice shall be in writing, shall include the name, address,
and telephone number of the individual or entity who shall have full authority
to negotiate, amend, and modify all terms of the mortgage with the debtor, and
shall be sent by registered or certified mail or statutory overnight delivery,
return receipt requested, to the property address or to such other address as
the debtor may designate by written notice to the secured creditor. The notice
required by this Code section shall be deemed given on the official postmark day
or day on which it is received for delivery by a commercial delivery firm.
Nothing in this subsection shall be construed to require a secured creditor to
negotiate, amend, or modify the terms of a mortgage instrument.
(b)
The notice required by subsection (a) of this Code section shall be given by
mailing or delivering to the debtor a copy of the notice of sale to be submitted
to the publisher."
SECTION
3.
This
Act shall become effective upon its approval by the Governor or upon its
becoming law without such approval.
SECTION
4.
All
laws and parts of laws in conflict with this Act are repealed.